Cholamandalam MS drives to Hyundai dealers
By Venkatachari Jagannathan | 17 Mar 2007
Chennai: Tapping the business at source is what every body would like to do and domestic non-life insurers are becoming increasingly adept at doing so. In the case of passenger car insurance business, the tie-up with vehicle manufacturers and the dealers is driving the business.
The Chenai-based non-life insurer Cholamandalam MS General Insurance Company Limited is the latest to enter this segment. Tying up with Hyundai Motor India Limited the non-life insurer becomes one of its preferred insurers for Hyundai vehicles. Buyers of Hyundai cars in India can insure their vehicle with Cholamandalam MS at the point of purchase and later avail cashless repair facilities in the case of accidental damage.
Says Shivakumar S, senior vice president (Retail insurance), Cholamandalam MS, "The tie-up gives us access to 184 Hyundai Motor's dealer points. To start with, we would be pitching for a 20-25 per cent share of premium as the car manufacturer has tie ups with other insurers as well."
Even that 20-25 per cent would give the insurer a sizeable premium as Hyundai Motor sold just below 3 lakh vehicles last year. The company is in the process of expanding its production and its dealer network to 250.
During the current fiscal (2006-07), Cholamandalam MS has earned a total motor premium of Rs85 crore. "Out of that, the car premium would be around 90 per cent. We should end FY 07 earning Rs100 crore selling motor policies," says Shivakumar.
For Cholamandalam MS, this is the second tie up. The company had earlier sewed up a similar agreement with Toyota Kirloskar Motor Private Limited, Bangalore.
